FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
47 085.73

Stock markets rebound, Dollar on standby

6 May 2021

Global equity bulls were back in action on Wednesday, shaking off jitters triggered by China-Taiwan tensions and comments from Treasury Secretary Janet Yellen. European markets closed green thanks to encouraging data from Europe while tech shares led a rebound on Wallstreet.

Treasury Secretary Janet Yellen rattled financial markets yesterday by suggesting that interest rates may need to rise to prevent the US economy from overheating.

The negative reaction witnessed across the equity space laid bare the market sensitivity to inflation expectations. Interestingly, Yellen later clarified that she was not forecasting interest rate hikes – which came as a breath of fresh air to the Technology sector. The Nasdaq 100 has gained over 0.6% this afternoon, while the S%P 500 and Dow Jones have both gained almost 0.5%.

Looking at the technical charts, the Nasdaq turned bearish on the daily timeframe after securing a solid daily close below the 13750 support. If this level transforms into a dynamic resistance, the index could decline towards 13350 – a level just above the 50-day Simple Moving Average. Alternatively, a sharp rebound back above 13750 is likely to trigger a move towards the 14000 regions.

Dollar on standby ahead of NFP 

The Dollar slightly weakened on Wednesday afternoon after the U.S. private payroll data for April missed market expectations. According to the data released by the ADP Research Institute, the USD ADP employment change came in at 742,000 last month. This was below the 850,000 market expectations but still the fastest pace of job creation since September 2020.

Given how the main risk event and potential market shaker remains the US jobs report on Friday, the Dollar could remain on standby. Looking at the technical picture, the Dollar Index (DXY) could challenge 91.80 if a solid daily close above 91.31 is achieved. Should this level prove to be reliable resistance, a decline back towards 91.05 and 90.50 could be on the cards.

Commodity spotlight – Gold 

Gold is trading within a range on the daily charts with layers of support around $1700 - $1765 and resistance at $1800. Although the MACD trades above 0, prices seem to be capped below the 100-day Simple Moving Average. There is a possibility that the precious metal remains rangebound until the US jobs report is published on Friday. Should the Dollar push higher on Thursday, this could inject Gold bears with enough confidence to drag prices below the $1770 - $1765 regions with the first level of interest at $1755.




Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.